HSBC will make an additional £2bn of mortgage funding available to UK borrowers, with £1bn allocated to first-time buyers this year.
The move will extend HSBC’s mortgage funding pledge to £17bn in 2012, up from £15bn announced earlier this year. It's lending pledge to first-time buyers has increased from £3bn to £4bn.
The bank - the sixth biggest lender which loaned £11.3bn in 2010 - signalled its intention to increase market share in January.
Peter Dockar (pictured), head of mortgages at HSBC, said: “At a time when many other lenders are contracting their lending, we remain committed to helping more customers who aspire to own their own home and we approved a record number of mortgages in the first half of this year."
HSBC also revealed it has approved more than £10.6bn in mortgages in the first six months of 2012, helping over 97,000 UK borrowers. This is an increase of 16% on the same period in 2011, where the figure stood at £9.1bn.
Of the total, £2.7bn was approved to first-time buyers.
Last week, the lender launched a five-year fix at a rate of 2.99%, available up to 60% LTV - the lowest fixed rate product on the market.
Dockar added: “With the security of our retail deposit funding we are committed to offering competitive rates to benefit our customers with what is for many, their largest monthly commitment.”
For the editor's blog on HSBC, click here.
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